Deep uncertainty makes forecasting into 2022 a unique challenge. Some supply chains face great inflationary pressure other industries have been crippled by the effects of the pandemic, increasing their exposure to financial risk and the potential for price volatility. Procurement teams must anticipate these threats and develop the capability to respond to them.
CPO COMPASS
CPO COMPASS
The Uneven Recovery
Discover how leaders can mitigate supply disruption and build resiliency in the face of volatility. Danone share its approach to building transparency through supplier visibility dashboards
In partnership with
65%
of CPOs report they are building closer collaboration with business units to address increasing prices and price volatility in 2022
One crucial lever to manage this uncertainty
lies in working with stakeholders
Increasingly, that means procurement teams are working to influence demand for direct materials and connecting that with supplier capability:
“I think that demand elements are a fertile
ground to work with, making our materials
lighter or reducing our consumption.
We work with our technical staff so they
understand that these need to be the
specifications in future”
CPO, primary industries
55%
of CPOs say they plan to invest in supplier risk management technology in 2022.
Meanwhile, procurement provides an increasingly
vital source of data, insight and risk management
capability for the wider organisation:
Proportion of category-level procurement professionals that expect prices to increase
Source: Procurement Leaders Category Planning Guide 2022